Adidas reported a robust third quarter, exceeding expectations with a 14 per cent underlying growth for the brand. The company achieved a gross margin of 51.3 per cent and an operating profit of €598 million, reflecting strong performance across all regions, channels, and product divisions.

Currency-neutral revenues increased by 10 per cent to €6.438 billion, driven largely by footwear sales, which rose 14 per cent. The successful sale of remaining Yeezy inventory contributed approximately €200 million. The company’s strategy to enhance its football lifestyle business and introduce new collections resulted in double-digit growth across both Lifestyle and Performance categories.

Regional growth was notable, with Europe seeing an 18 per cent increase in currency-neutral sales, while Emerging Markets and Latin America grew 16 per cent and 28 per cent, respectively. Although North America experienced a 7 per cent decline due to the Yeezy business, revenues excluding Yeezy increased.

The gross margin improved significantly by 2.0 percentage points, attributed to lower product costs and a favorable product mix. Operating expenses rose by 10 per cent as Adidas invested in marketing and brand initiatives, including major events like UEFA EURO 2024 and the Olympic Games.

For the first nine months of 2024, currency-neutral revenues increased 10 per cent to €17.718 billion. The gross margin also improved, reaching 51.1 per cent. The company effectively managed its inventories, which decreased 7 per cent, allowing for continued growth.

Adidas anticipates a 10 per cent increase in currency-neutral revenues for the full year. The brand's strong momentum and continued investment in innovative products position it well for future growth, reflecting a strategic focus on engaging with a new generation of consumers.

In summary, Adidas's third-quarter results and strategic initiatives highlight a promising trajectory as the brand aims to strengthen its market position and drive sustainable growth moving forward.